Dear Mr Johnson
I received two replys to tax questions from you 2 years ago. I hope you have been well since then.
I assume that my previous questions are still accessible to you via my account on the Just Answer website.
I have continued my trading activity but am yet to make an annual profit. Because of this I have not yet filed a tax return with the IRS.
Recently, it seems that my UK based broker has
become subject to a reporting requirement to the IRS because they sent me a request to fill in and return a W-8BEN to them.
I understand that a W-8BEN doesn't apply to me. However, because of my brokers obligations it has become necessary for me to send my broker a W-9 form instead or they will have to suspend my account. The purpose of this, from the IRS's point of view is so that they can recieve withholding
tax on dividends
on US equities one way or the other. I trade in options and to date my account hasn't recieved any dividend
payments. Does my broker only contact the IRS with my details when I have dividend income to report or do they pass my details to them right away?
If it is the latter this will be my first, indirect, correspondance with the IRS and it seems like this would be the right time to get up to date with them and begin filing tax returns
If so, I want to go about it in the right way and would appreciate your advice on how to go about approaching them and becoming fully compliant in a way that doesn't get me into trouble.
I would prefer that it is the former so that I can stay off their radar until I am making enough money to hire an expert here in Ireland to do it for me.
Regardles, please let me know where I stand.